Renault Sets Strict Terms for Contract Manufacturing of Chinese Cars in Europe

Renault is evaluating the possibility of assembling Chinese‑made electric vehicles in its European factories, but the French group insists any agreement must align with its long‑term strategy. The company demands full control over production processes, protection of its intellectual property, and tangible benefits for its existing industrial network. By using under‑utilised capacity, Renault hopes to generate additional revenue without investing in new model development, while Chinese partners would gain shorter supply chains and avoid EU tariffs.

Renault’s operational director, François Provo, emphasized that the group’s plants are already running at full capacity after a 9.5 % revenue increase in the first half of the year. The firm also called on Brussels for stricter rules, requiring any Asian brand that markets cars as “Made in Europe” to integrate a local component supply chain rather than merely shipping complete kits.

The stance reflects broader pressures on Europe’s auto industry from rising Chinese EV competition, higher production costs and slowing demand, prompting traditional manufacturers to explore contract‑manufacturing as a way to optimise existing facilities.